ADM Capital is pleased to announce that it has fully exited from its investment in Project Joy 2 achieving a 20% IRR and a 1.55x cash-on-cash multiple.
Project Joy 2, the second with the same borrower, was an October 2017 senior secured lending to a Beijing based group of companies in the Information Technology sector.
The ADM Capital loan proceeds were used to finance the Borrower’s growth plan and revenue diversification via geographical expansion. ADM Capital was the company’s sole creditor, and throughout the life of the loan, controlled the majority of the Borrower’s shares, bank accounts and cash flows.
The loan was priced to generate a contractual IRR of 17% p.a. via a cash coupon, PIK and various fees.
In addition to the contractual return, ADM Capital negotiated further upside in the form of an upfront fee which provided 300bps of return.